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Operator: Please standby. Well, good morning and welcome to the ChinaCast Education Corporation Earnings Conference Call for the second quarter and first half of 2009 ending June 30, 2009. With us today are Ron Chan, Chairman and Chief Executive Officer and Tony Sena, Chief Financial Officer. Mr. Chan will commence today’s conference.
The press release of the second quarter 2009 financial results is available on the ChinaCast investor relations website at www.chinacasteducation.com. This call is being recorded and a replay will be available starting two hours after the call concludes. You can listen to the replay either on the company’s website or by calling toll free in North America 1888-203-1112. International callers can dial 1-719-457-0820. The pass code for the replay is 4372027.
As a reminder please note that the discussions today may contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such results may be materially different from the views expressed today. A number of potential risks and uncertainties are outlined in the company’s public filings with the SEC. The company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
And now it is my pleasure to turn the conference over to Mr. Ron Chan, chairman and CEO of ChinaCast Education Corporation. Mr. Chan.
Ron Chan: Thank you and good morning to those of you listening from North America and good evening to those participating in the call from Asia. I am pleased to report another solid profitable quarter which Tony will discuss in more detail with you later. The end of the second quarter represented our first full year of operations of The Foreign Trade and Business College of Chongqing Normal University. And thus we were able to take the first step in our strategy of building one of the first nationwide, for-profit post-secondary education companies in China.
As shown by our profit and cash flow growth over the past year, we believe our strategy of focusing on building a nationwide network of career oriented universities, coupled with a comprehensive E-learning platform positions the company for continued growth in the 2009 academic year starting in September. We have also taken steps to improve the profitability of the existing degree programs we currently offer in implementing our plans to extend our non-degree and international course offerings.
We have recently established our first summer exchange program with a US university and our goal is to further diversify and leverage this asset to drive incremental revenue and net income growth. In our E-Learning business segment, we focused on improving profitability by focusing on increasing higher margin service revenue and decreasing lower margin equipment revenue. We intend to continue to increase the profitability of this segment while developing new products and services which will provide incremental growth.
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